The Group Managing Director of Rainoil Limited, Gabriel Ogbechie, has urged the Federal Government to entrench fair, transparent, and predictable pricing of petroleum products, warning that distortions in the emerging market structure could undermine investment and long-term stability in Nigeria’s downstream sector.
A statement by the company quoted Ogbechie as making the call while speaking at a Mid and Downstream Transformation Debate at the recent Nigerian International Energy Summit in Abuja, where stakeholders examined strategies for transforming downstream markets and refining.
According to him, as Nigeria’s downstream landscape adjusts to increased domestic refining capacity, pricing must be guided by equity, transparency, and fairness to all players, including consumers. “If oil is being produced locally, it is important that everyone prioritises what is produced locally,” he said, stressing that the evolving market structure requires a clear and balanced pricing framework.
Ogbechie cautioned that unpredictable or inequitable pricing could distort the market and ultimately destroy value rather than create it. He maintained that operators require price clarity and consistency to plan, invest, and expand with confidence.
He noted that the sector is undergoing significant disruption following years of fuel scarcity driven largely by non-functional refineries and heavy dependence on imported petroleum products. “Unpredictable or inequitable pricing could distort the market and destroy value rather than create it. Pricing must be fair to all stakeholders, including consumers, and predictable enough to allow operators to plan and invest with confidence,” he stated.
Until the Dangote refinery became operational, the nation’s state-owned refineries were largely idle, making imports the primary source for domestic consumption. “Thankfully, in the last two years, we have been privileged to witness the advent of the Dangote refinery, which has been a blessing to the country and a game-changer for the industry,” Ogbechie said.
While acknowledging the contribution of the Dangote refinery to domestic supply, he emphasised that sustainable progress would depend more on collaboration than rivalry between local refiners and downstream marketers.
Beyond pricing, Ogbechie identified distribution inefficiencies as a major challenge confronting the downstream sector. He criticised Nigeria’s heavy reliance on road transportation for moving petroleum products across long distances, describing it as economically unsustainable and harmful to national infrastructure. “It does not make sense to move petroleum products from Lagos to Sokoto by truck over a distance of more than 1,000 kilometres,” he said.
According to him, trucking large volumes of fuel across such distances raises costs, damages roads, and exposes communities to avoidable safety risks. He called for the revival of Nigeria’s extensive but largely underutilised pipeline network, noting that the country is already connected through pipelines linking refineries and major cities, including routes from Port Harcourt to Aba, Enugu, and Makurdi; Kaduna to Jos, Gombe, Yola, and Kano; and Warri to Benin and other inland locations.
“This country is wired underground through pipelines. Some of us were privileged to see these pipelines work. We need to go back to it,” Ogbechie said.
He stressed that addressing pipeline vandalism and theft through intelligence-driven monitoring and stronger legal frameworks would be crucial to restoring confidence in pipeline transportation and reducing overdependence on trucks.
On regulation, Ogbechie backed the position of the industry regulator, Engineer Saidu Mohammed, who had earlier pledged to be “fair but firm”.
The Group Managing Director of Rainoil Limited, Gabriel Ogbechie, has urged the Federal Government to entrench fair, transparent, and predictable pricing of petroleum products, warning that distortions in the emerging market structure could undermine investment and long-term stability in Nigeria’s downstream sector.
A statement by the company quoted Ogbechie as making the call while speaking at a Mid and Downstream Transformation Debate at the recent Nigerian International Energy Summit in Abuja, where stakeholders examined strategies for transforming downstream markets and refining.
According to him, as Nigeria’s downstream landscape adjusts to increased domestic refining capacity, pricing must be guided by equity, transparency, and fairness to all players, including consumers. “If oil is being produced locally, it is important that everyone prioritises what is produced locally,” he said, stressing that the evolving market structure requires a clear and balanced pricing framework.
Ogbechie cautioned that unpredictable or inequitable pricing could distort the market and ultimately destroy value rather than create it. He maintained that operators require price clarity and consistency to plan, invest, and expand with confidence.
He noted that the sector is undergoing significant disruption following years of fuel scarcity driven largely by non-functional refineries and heavy dependence on imported petroleum products. “Unpredictable or inequitable pricing could distort the market and destroy value rather than create it. Pricing must be fair to all stakeholders, including consumers, and predictable enough to allow operators to plan and invest with confidence,” he stated.
Until the Dangote refinery became operational, the nation’s state-owned refineries were largely idle, making imports the primary source for domestic consumption. “Thankfully, in the last two years, we have been privileged to witness the advent of the Dangote refinery, which has been a blessing to the country and a game-changer for the industry,” Ogbechie said.
While acknowledging the contribution of the Dangote refinery to domestic supply, he emphasised that sustainable progress would depend more on collaboration than rivalry between local refiners and downstream marketers.
Beyond pricing, Ogbechie identified distribution inefficiencies as a major challenge confronting the downstream sector. He criticised Nigeria’s heavy reliance on road transportation for moving petroleum products across long distances, describing it as economically unsustainable and harmful to national infrastructure. “It does not make sense to move petroleum products from Lagos to Sokoto by truck over a distance of more than 1,000 kilometres,” he said.
According to him, trucking large volumes of fuel across such distances raises costs, damages roads, and exposes communities to avoidable safety risks. He called for the revival of Nigeria’s extensive but largely underutilised pipeline network, noting that the country is already connected through pipelines linking refineries and major cities, including routes from Port Harcourt to Aba, Enugu, and Makurdi; Kaduna to Jos, Gombe, Yola, and Kano; and Warri to Benin and other inland locations.
“This country is wired underground through pipelines. Some of us were privileged to see these pipelines work. We need to go back to it,” Ogbechie said.
He stressed that addressing pipeline vandalism and theft through intelligence-driven monitoring and stronger legal frameworks would be crucial to restoring confidence in pipeline transportation and reducing overdependence on trucks.
On regulation, Ogbechie backed the position of the industry regulator, Engineer Saidu Mohammed, who had earlier pledged to be “fair but firm”.
The Group Managing Director of Rainoil Limited, Gabriel Ogbechie, has urged the Federal Government to entrench fair, transparent, and predictable pricing of petroleum products, warning that distortions in the emerging market structure could undermine investment and long-term stability in Nigeria’s downstream sector.
A statement by the company quoted Ogbechie as making the call while speaking at a Mid and Downstream Transformation Debate at the recent Nigerian International Energy Summit in Abuja, where stakeholders examined strategies for transforming downstream markets and refining.
According to him, as Nigeria’s downstream landscape adjusts to increased domestic refining capacity, pricing must be guided by equity, transparency, and fairness to all players, including consumers. “If oil is being produced locally, it is important that everyone prioritises what is produced locally,” he said, stressing that the evolving market structure requires a clear and balanced pricing framework.
Ogbechie cautioned that unpredictable or inequitable pricing could distort the market and ultimately destroy value rather than create it. He maintained that operators require price clarity and consistency to plan, invest, and expand with confidence.
He noted that the sector is undergoing significant disruption following years of fuel scarcity driven largely by non-functional refineries and heavy dependence on imported petroleum products. “Unpredictable or inequitable pricing could distort the market and destroy value rather than create it. Pricing must be fair to all stakeholders, including consumers, and predictable enough to allow operators to plan and invest with confidence,” he stated.
Until the Dangote refinery became operational, the nation’s state-owned refineries were largely idle, making imports the primary source for domestic consumption. “Thankfully, in the last two years, we have been privileged to witness the advent of the Dangote refinery, which has been a blessing to the country and a game-changer for the industry,” Ogbechie said.
While acknowledging the contribution of the Dangote refinery to domestic supply, he emphasised that sustainable progress would depend more on collaboration than rivalry between local refiners and downstream marketers.
Beyond pricing, Ogbechie identified distribution inefficiencies as a major challenge confronting the downstream sector. He criticised Nigeria’s heavy reliance on road transportation for moving petroleum products across long distances, describing it as economically unsustainable and harmful to national infrastructure. “It does not make sense to move petroleum products from Lagos to Sokoto by truck over a distance of more than 1,000 kilometres,” he said.
According to him, trucking large volumes of fuel across such distances raises costs, damages roads, and exposes communities to avoidable safety risks. He called for the revival of Nigeria’s extensive but largely underutilised pipeline network, noting that the country is already connected through pipelines linking refineries and major cities, including routes from Port Harcourt to Aba, Enugu, and Makurdi; Kaduna to Jos, Gombe, Yola, and Kano; and Warri to Benin and other inland locations.
“This country is wired underground through pipelines. Some of us were privileged to see these pipelines work. We need to go back to it,” Ogbechie said.
He stressed that addressing pipeline vandalism and theft through intelligence-driven monitoring and stronger legal frameworks would be crucial to restoring confidence in pipeline transportation and reducing overdependence on trucks.
On regulation, Ogbechie backed the position of the industry regulator, Engineer Saidu Mohammed, who had earlier pledged to be “fair but firm”.
The Group Managing Director of Rainoil Limited, Gabriel Ogbechie, has urged the Federal Government to entrench fair, transparent, and predictable pricing of petroleum products, warning that distortions in the emerging market structure could undermine investment and long-term stability in Nigeria’s downstream sector.
A statement by the company quoted Ogbechie as making the call while speaking at a Mid and Downstream Transformation Debate at the recent Nigerian International Energy Summit in Abuja, where stakeholders examined strategies for transforming downstream markets and refining.
According to him, as Nigeria’s downstream landscape adjusts to increased domestic refining capacity, pricing must be guided by equity, transparency, and fairness to all players, including consumers. “If oil is being produced locally, it is important that everyone prioritises what is produced locally,” he said, stressing that the evolving market structure requires a clear and balanced pricing framework.
Ogbechie cautioned that unpredictable or inequitable pricing could distort the market and ultimately destroy value rather than create it. He maintained that operators require price clarity and consistency to plan, invest, and expand with confidence.
He noted that the sector is undergoing significant disruption following years of fuel scarcity driven largely by non-functional refineries and heavy dependence on imported petroleum products. “Unpredictable or inequitable pricing could distort the market and destroy value rather than create it. Pricing must be fair to all stakeholders, including consumers, and predictable enough to allow operators to plan and invest with confidence,” he stated.
Until the Dangote refinery became operational, the nation’s state-owned refineries were largely idle, making imports the primary source for domestic consumption. “Thankfully, in the last two years, we have been privileged to witness the advent of the Dangote refinery, which has been a blessing to the country and a game-changer for the industry,” Ogbechie said.
While acknowledging the contribution of the Dangote refinery to domestic supply, he emphasised that sustainable progress would depend more on collaboration than rivalry between local refiners and downstream marketers.
Beyond pricing, Ogbechie identified distribution inefficiencies as a major challenge confronting the downstream sector. He criticised Nigeria’s heavy reliance on road transportation for moving petroleum products across long distances, describing it as economically unsustainable and harmful to national infrastructure. “It does not make sense to move petroleum products from Lagos to Sokoto by truck over a distance of more than 1,000 kilometres,” he said.
According to him, trucking large volumes of fuel across such distances raises costs, damages roads, and exposes communities to avoidable safety risks. He called for the revival of Nigeria’s extensive but largely underutilised pipeline network, noting that the country is already connected through pipelines linking refineries and major cities, including routes from Port Harcourt to Aba, Enugu, and Makurdi; Kaduna to Jos, Gombe, Yola, and Kano; and Warri to Benin and other inland locations.
“This country is wired underground through pipelines. Some of us were privileged to see these pipelines work. We need to go back to it,” Ogbechie said.
He stressed that addressing pipeline vandalism and theft through intelligence-driven monitoring and stronger legal frameworks would be crucial to restoring confidence in pipeline transportation and reducing overdependence on trucks.
On regulation, Ogbechie backed the position of the industry regulator, Engineer Saidu Mohammed, who had earlier pledged to be “fair but firm”.
